Is FKLI Falling Apart?

By: Bullseye

22/1/2013

Topic:  Is FKLI falling apart?

Yesterday, I believe it was a disaster for lots of investors as the FKLI index has trumped more than 2% from its recent high. Why is this happening? Rumors are spreading that our honorable Prime Minister had hinted about the upcoming general election is round the corner, everyone had panicked and launched a “selling phenomena” which causes our indices to slump like never before.

But… from what I could observe, through the chronological events that happened recently, I would have the gut feeling that this event had some other reasons behind it.

Still remember when US are facing the fiscal cliff issue? Where every local newspaper where commenting that there will be a huge amount of “hot money” pouring into Asian countries? These funds I believe had came in and in order for them to get as much stocks as possible at a reasonable price, there would be a possibility that they are the ones that spread the rumours and causes panic modes among traders which causes such catastrophe phenomena.

But, whether this issue is caused by foreign funds or not, we wouldn’t be too sure, should the general election to be held before Chinese New Year, then the tradition of having a “rally” before Chinese New Year would be impossible and thus hope to achieve 1700 for KLSE index would be perished.

Therefore, I would advise investors or traders NOT to be over worried, it may be the end of the worst, or it may be just a start of the worst, but should you’ve invested in a fundamentally strong company, it would just be a matter of time that it could recover and revive the momentum and produce profit for you.

Disclaimer: The information and analysis mentioned above are solely based on Invest ACE’s personal technical analysis with the aid of professional training, decades of experience and meticulous foresight; Invest ACE shall NOT be held liable for any losses (financially or otherwise) incurred by any parties relying on aforementioned analysis without prior professional consultation. Should you wish to find out more on how to invest wisely, do not hesitate to contact Invest ACE via investace126@gmail.com.